Press Release

WALTHAM , Mass. – (June 27, 2007) – Wolters Kluwer Financial Services’ Insurance Compliance Solutions group has identified the top 10 reasons insurers are found to be out of compliance during market conduct exams. In order to help insurers avoid the noncompliance violations that are most prevalent in their business area, Wolters Kluwer Financial Services has provided top 10 lists for property and casualty insurance, as well as life and health insurance.

Wolters Kluwer Financial Services’ industry research shows that the top 10 most common market conduct compliance criticisms for property and casualty insurance are:

1. Failure to properly terminate a policy
2. Failure to acknowledge, pay, or deny claims within specified time frames
3. Using unapproved or unfiled rates
4. Failure to communicate a delay in the settlement of claims in writing
5. Failure to notify of producer appointments or terminations
6. Improper documentation of underwriting policies
7. Improper documentation of claims policies
8. Using unapproved or unfiled forms
9. Failure to produce requested records for an examination
10. Failure to provide required disclosures (such as selection/rejection issues or notices in the claims process)

The top 10 most common criticisms for life and health insurance are:

1. Failure to acknowledge, to pay, or deny claims within specified time frames
2. Using unapproved or unfiled forms
3. Failure to adhere to advertising requirements
4. Failure to adhere to replacement requirements
5. Failure to notify of producer appointments or terminations
6. Using unapproved or unfiled rates
7. Failure to adhere to grievance and appeals requirements
8. Failure to provide required disclosures (such as Explanation of Benefits or guaranty fund notices)
9. Improper documentation of claims policies
10. Failure to properly terminate a policy

“Every department within an insurance organization—whether its claims, customer service, human resource or sales—is affected by compliance regulations,” said David Evans, general manager of Insurance Compliance Solutions at Wolters Kluwer Financial Services. “This means that insurers must identify potential risks before problems occur in order to protect their reputation and revenues, and most importantly, their customers.”

Wolters Kluwer Financial Services reviews and analyzes the content in market conduct examinations from across the United States, assigning all of the criticisms to various categories. The categories with the most criticisms comprise the top ten lists, which are compiled to help insurers steer clear of noncompliance.

“This research allows us to help insurers prevent costly mistakes,” explained Evans. “Market conduct exams can have a dramatic impact on an organization. By identifying the common problem areas, insurers can evaluate their compliance practices and educate their employees to help ensure their exams have positive outcomes.”

About Wolters Kluwer Financial Services

Wolters Kluwer Financial Services provides best-in-class compliance, content, and technology solutions and services that help financial organizations manage risk and improve efficiency and effectiveness across their enterprise. The organization’s prominent brands include Bankers Systems, VMP® Mortgage Solutions, PCi, GainsKeeper®, CCH® Capital Changes, NILS INSource®, AuthenticWeb™, CCH Wall Street and GulfPak. Wolters Kluwer Financial Services’ solutions include integrated and stand-alone compliance and work flow tools, documentation, analytics, authoritative information, and professional services. Customers include banks, credit unions, mortgage lenders, securities, and insurance organizations of all sizes throughout the United States. For more information on Wolters Kluwer Financial Services, visit www.WoltersKluwerFS.com. Wolters Kluwer Financial Services is a unit of Wolters Kluwer, a leading global information services and publishing company with annual revenues (2006) of €3.7 billion and approximately 19,900 employees worldwide. For more information, visit www.wolterskluwer.com.